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IndInfravit Trust has entered into an agreement to acquire the entire shareholding of Ahmedabad-based Sadbhav Infrastructure Project Ltd (SIPL) in nine operational road projects, for about Rs 6,610 crore.
On completion of the transaction, SIPL will receive the proceeds in cash and allotment of units of IndInfravit. Post-completion, SIPL will hold not more than 10 per cent unit-holding in IndInfravit, the company said in a statement.
SIPL’s roads portfolio comprises seven toll roads and two annuity roads, with a total of 2,619 lane km in Gujarat, Karnataka, Maharashtra, Rajasthan and Telangana. The roads, forming part of the Roads Portfolio, have been operational for about six years.
IndInfravit, sponsored by L&T Infrastructure Development Projects Ltd (L&T IDPL), currently holds a portfolio of five operational toll road concessions. In addition to L&T IDPL, the other unit-holders include Allianz insurance companies, represented by Allianz Capital Partners, Canada Pension Plan Investment Board and OMERS Infrastructure.
This transaction is in line with IndInfravit’s strategy to acquire additional road projects in India, and expand its current portfolio. SIPL is a road developer, and is majority owned by Sadbhav Engineering Ltd.
Ambit was the financial adviser to IndInfravit and Morgan Stanley to SIPL.
Post completion of this transaction, SIPL will continue to own three operational road project companies and 12 under-construction road projects under the hybrid annuity model.
The InvIT platform clearly underlines how India remains an attractive destination for serious and committed long-term investors, and we look forward to more such transactions in the near future,” said J. Subramanian, Chief Executive, LTIDPL IndvIT Services Ltd (Investment Manager-IndInfravit).
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